If you’re asking how much super do I need to retire, you’re looking for a useful target, not just a number to save because someone else says so.
The answer depends on the life you want, when you plan to retire, where you’ll live and what income you can draw from other sources. Benchmarks can help you get started, but your own spending and plans matter more.
ASFA’s comfortable and modest retirement benchmarks
The Association of Superannuation Funds of Australia (ASFA) publishes estimates for two retirement lifestyles: modest and comfortable. The table below shows its 2026 estimated super balances at age 67 for homeowners.
| Lifestyle | Single | Couple |
|---|---|---|
| Modest | $110,000 | $120,000 |
| Comfortable | $630,000 | $730,000 |
ASFA’s figures are guides, not guarantees or minimum requirements. They assume you own your home, retire at 67, draw down your savings over retirement and may receive some Age Pension. ASFA also estimates that a modest lifestyle for a private renter requires a larger super balance, around $340,000 for a single person and $385,000 for a couple, because rent adds a substantial ongoing cost.
ASFA describes a modest retirement as meeting basic needs, while a comfortable one allows for a broader range of leisure and lifestyle activities. Its Retirement Standard explains the assumptions behind its budgets.
These figures are useful reference points, but they may not reflect your plans. You might want to travel frequently, support adult children, retire before 67 or leave money to family. Your housing, health and other income can also shift the target significantly.
Start with the retirement you want
A more personal estimate starts with your likely annual spending, not a lump sum.
List the costs you expect in retirement, including:
- Essentials: housing, food, utilities, transport, health care and insurance.
- Lifestyle choices: travel, hobbies, dining out, gifts and helping family.
- Irregular costs: home repairs, a new car or unexpected medical expenses.
Separate essential spending from flexible spending. That way, you can see what you need to cover every year and where you might have room to adjust if circumstances change.
Then consider how your plans might evolve. Your spending could be higher in the early years if you travel more, then change as your priorities or health needs change. Try different retirement dates and spending levels rather than relying on a single forecast.
Work out how the Age Pension may fit in
Super may not be your only source of retirement income. If you qualify, the Age Pension can help cover some of your spending, but eligibility and payment amounts depend on your circumstances.
Services Australia assesses Age Pension eligibility using rules that include age, residency, income and assets. Your principal home is generally treated differently from assessable assets, but how your super is assessed can depend on your age and situation. Rates and thresholds can change, so check the latest Age Pension information and assets test details.
For your estimate, think in terms of an income gap:
Your annual spending target − expected income from the Age Pension and other sources = the amount your savings may need to provide.
That’s a starting point, not a complete calculation. The Age Pension can be affected by changes in your finances, and it shouldn’t be assumed at a particular level decades in advance. Build a plan that considers both eligibility and what you could do if your payment is lower than expected.
Consider investment returns and inflation
Your super is generally invested, so its value can rise or fall over time. Investment returns can help your savings support you for longer, but they aren’t guaranteed. A strong average return also doesn’t mean your balance will grow smoothly every year.
This matters particularly around retirement. If markets fall early in retirement while you’re withdrawing money, you may have less invested to benefit when markets recover. Consider how your plan might hold up under a range of return assumptions, including a period of weaker performance.
Inflation matters too. It reduces what a given amount of money can buy over time. For example, at an illustrative 3% annual inflation rate, a $50,000 yearly budget today would be about $67,000 in 10 years and $90,000 in 20 years. That’s an example, not a forecast, but it shows why a target should account for the time between now and retirement.
When you use a calculator, check whether it shows results in today’s dollars or future dollars. Today’s dollars adjust for inflation and can make it easier to compare a future estimate with your current lifestyle.
Work backwards from your Freedom Number
Your Freedom Number is the amount of invested wealth you may need to support a chosen level of income. Instead of starting with a generic super target, start with the income you want and work backwards.
- Estimate your yearly retirement spending.
- Subtract income you expect from the Age Pension and other sources.
- Consider how long you may need your savings to last.
- Test different investment return and inflation assumptions.
- Check how your target changes if you retire earlier, spend more or want to leave a legacy.
Advice360’s Your Freedom Number calculator lets you explore how an income goal and assumptions such as returns, inflation and tax affect an estimated lump sum. The calculator excludes the Age Pension, so consider potential pension income separately rather than treating its result as your complete retirement target.
You can also use the Grow Your Super calculator to estimate how your current balance and contributions might grow over time. Both tools offer estimates only. They don’t predict returns or replace a personal financial plan.
Put your estimate in context
A target is more helpful when it reflects your whole financial picture. As you review your position, include:
- Your super balance, contributions, investment option and fees.
- Savings and investments outside super.
- Your home, mortgage and other debts.
- Your planned retirement age and whether you expect to work part-time.
- Your partner’s finances and any support you want to provide to family.
Think about your legacy plans as well. If leaving an inheritance is important to you, that may mean setting a higher target or adjusting how much you withdraw. If you’re comfortable using more of your savings during your lifetime, your plan could look different.
It can help to revisit your estimate each year and after major changes, such as a new job, a change in health or paying off your mortgage. For more context, read our guide to retirement planning in Australia.
Your next step
There’s no single magic number that fits every Australian. ASFA’s benchmarks give you a starting point, but your own retirement income target should reflect the lifestyle you want, your housing costs, possible Age Pension eligibility and the time your savings may need to last.
Start by estimating your annual spending, then use the Your Freedom Number and Grow Your Super calculators to explore different assumptions. Advice360’s Retirement & Legacy Planning can help you connect those estimates with your broader plans.
We're more than happy to have a complimentary chat about your retirement number. Just reach out to our team and we'll find a time that suits you.
This article provides general information only and doesn’t take your personal circumstances, objectives or needs into account. It isn’t personal financial, tax or legal advice. Figures and government rules can change, and calculator results are estimates rather than guarantees. Consider seeking advice from a licensed financial adviser before making decisions.
